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USAA, Nationwide, Travelers, Erie, Geico and Progressive are the cheapest car insurance companies nationwide, according to our analysis.
Car insurance increases are expected to continue this spring. We evaluated which companies are the cheapest for a variety of driver profiles and ages to help you narrow your search.
Here is the cheapest car insurance of April 2024, according to our analysis:
| Cheapest car insurance by category | Company | Average monthly cost |
|---|---|---|
For good drivers | Nationwide | $120 |
After a speeding ticket | Nationwide | $157 |
After an accident causing an injury | Erie | $185 |
After a DUI | Progressive | $192 |
If you have bad credit | Nationwide | $171 |
For seniors | Nationwide | $117 |
For young drivers | Erie | $215 |
For teens on parent’s policy | Nationwide | $235 |
In some instances USAA was the cheapest but the next cheapest company is listed because USAA auto insurance is only available to veterans, military members and their families.
How We Chose the Cheapest Car Insurance
We analyzed auto insurance rates, complaints and collision repair scores to determine the cheapest car insurance companies. Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. You can read more about our editorial guidelines and the methodology for the ratings below.
- 191,500 car insurance rates analyzed
- 338 data points crunched
- 102 years of insurance experience on the editorial team
Cheapest Car Insurance Rates
How much you pay for car insurance will depend on a number of factors, including your age, claims history and driving record. The company that offers the cheapest car insurance for you can vary depending on the class of driver you fall into.
The Cheapest Car Insurance for Good Drivers: Nationwide
Nationwide is the cheapest company for good drivers that is available to the general public. USAA auto insurance is a bit cheaper but only available to those with a military connection.
We found that the national average for good drivers is $2,026 a year. The cheapest companies come in hundreds of dollars below that.
| Company | Average cost per year for good drivers | Average cost per month for good drivers | Total savings per year compared to average |
|---|---|---|---|
USAA* | $1,364 | $114 | $662 cheaper |
Nationwide | $1,436 | $120 | $590 cheaper |
Travelers | $1,521 | $127 | $505 cheaper |
Geico | $1,597 | $133 | $429 cheaper |
Erie | $1,642 | $137 | $384 cheaper |
Average | $2,026 | $169 |
*Average rates are based on good drivers with a clean driving record, meaning no at-fault accidents or traffic violations.
*USAA is available only to the military, veterans and their families.
The Cheapest Car Insurance After a Speeding Ticket: Nationwide
Our analysis found that Nationwide offers the cheapest car insurance after a speeding ticket, followed by Erie, Travelers and Geico. USAA is a top choice for people who qualify.
Our analysis found that having a speeding ticket on your driving record means an average insurance increase of 26%.
| Company | Average cost per year for drivers with a speeding ticket | Average cost per month for drivers with a speeding | Total savings per year compared to average |
|---|---|---|---|
USAA* | $1,661 | $138 | $872 cheaper |
Nationwide | $1,878 | $157 | $655 cheaper |
Erie | $1,899 | $158 | $634 cheaper |
Travelers | $2,062 | $172 | $471 cheaper |
Geico | $2,150 | $179 | $383 cheaper |
Average | $2,533 | $211 |
*USAA is available only to the military, veterans and their families.
The Cheapest Car Insurance After an Accident Causing Injury: Erie
Erie and Travelers have the cheapest rates if you have caused an accident that injured someone else. Erie is a regional insurer that serves 12 states in the East and Midwest. USAA offers excellent rates to military members and veterans.
Nationally, the average increase after an accident is 49% compared to a driver with a clean record.
| Company | Average cost per year after an accident with injuries | Average cost per month after an accident with injuries | Total savings per year compared to average |
|---|---|---|---|
USAA* | $1,958 | $163 | $1,051 cheaper |
Erie | $2,224 | $185 | $785 cheaper |
Travelers | $2,293 | $191 | $716 cheaper |
Nationwide | $2,337 | $195 | $672 cheaper |
State Farm | $2,428 | $202 | $581 cheaper |
Average | $3,009 | $251 |
*USAA auto insurance is available only to the military, veterans and their families.
The Cheapest Car Insurance After a DUI: Progressive
Progressive has the cheapest rates in our analysis for drivers with a DUI, with USAA a good option for military members and veterans who qualify. A DUI conviction leads to an average increase of 71%.
Car insurance companies usually request motor vehicle records before your policy renewal time to check for tickets and convictions such as DUIs.
| Company | Average cost per year for a driver with one DUI | Average cost per month for a driver with one DUI | Total savings per year compared to average |
|---|---|---|---|
Progressive | $2,307 | $192 | $1,056 cheaper |
USAA* | $2,604 | $217 | $759 cheaper |
Travelers | $2,610 | $218 | $753 cheaper |
Erie | $2,665 | $222 | $698 cheaper |
State Farm | $2,716 | $226 | $647 cheaper |
Average | $3,363 | $280 |
*USAA is available only to the military, veterans and their families.
The Cheapest Car Insurance for People With Bad Credit: Nationwide
Nationwide and Geico have relatively cheap car insurance for drivers with bad credit, among the companies we analyzed. USAA is a good bet for military members and veterans.
Poor credit can cause higher auto insurance rates than having a DUI or at-fault accident on your record. Average auto insurance costs go up 94% for drivers with poor credit compared to those with good credit.
| Company | Average cost per year for drivers with poor credit | Average cost per month for drivers with poor credit | Total savings per year compared to average |
|---|---|---|---|
Nationwide | $2,051 | $171 | $1,796 cheaper |
USAA* | $2,450 | $204 | $1,397 cheaper |
Geico | $2,482 | $207 | $1,365 cheaper |
Travelers | $2,699 | $225 | $1,148 cheaper |
Progressive | $3,221 | $268 | $626 cheaper |
Average | $3,847 | $321 |
*USAA auto insurance is available only to the military, veterans and their families.
The Cheapest Car Insurance for Seniors: Nationwide
Nationwide has the best rates for senior drivers ages 65 and 80, according to our analysis. The best car insurance for seniors will vary based on where you live and your personal details, such as your driving record.
We found that senior drivers see an average increase of 6% from age 60 to 70. By age 80, your rates may have increased 23% above the rate you were paying at age 70 and 31% more than your car insurance cost at age 60.
| Company | Average cost per year for senior drivers | Average cost per month for senior drivers | Total savings per year compared to average |
|---|---|---|---|
Nationwide | $1,402 | $117 | $748 cheaper |
USAA* | $1,455 | $121 | $695 cheaper |
Travelers | $1,668 | $139 | $482 cheaper |
Geico | $1,793 | $149 | $357 cheaper |
Auto-Owners | $1,813 | $151 | $337 cheaper |
Average | $2,150 | $179 |
*USAA is only available to military members, veterans and their families.
The Cheapest Car Insurance for Young Drivers: Erie
Erie, Travelers, Geico and Nationwide are the cheapest car insurance companies for young drivers buying their own policies. USAA is also usually a top choice if you qualify.
It’s typically cheaper for a young new driver to remain on a parent’s policy if they’re still living at home, whether they’re an 18-year-old or 25-year-old.
| Company | Average cost per year for young drivers | Average cost per month for young drivers | Total savings per year compared to average |
|---|---|---|---|
USAA* | $2,368 | $197 | $1,336 cheaper |
Erie | $2,575 | $215 | $1,129 cheaper |
Travelers | $2,638 | $220 | $1,066 cheaper |
Geico | $2,781 | $232 | $923 cheaper |
Nationwide | $2,881 | $240 | $823 cheaper |
Average | $3,704 | $309 |
*USAA is only available to military members, veterans and their families.
The Cheapest Car Insurance After Adding a Teen Driver: Nationwide
We found that Nationwide has the lowest rates after a teen driver is added to a parent’s policy. Other cheap companies include Erie, Progressive and Geico. USAA also has low rates for adding a teen if you’re eligible.
It can be hard to find cheap car insurance for teens because young new drivers pose a considerable risk to insurers. We found that adding a teenage driver to a parent’s policy costs $4,362 a year on average.
Adding a teen driver typically doubles the parent’s auto insurance bill. But it’s usually less expensive to add a teenager to a parent’s auto policy than to have the teen driver buy their own.
| Company | Average cost per year to add a teen driver to a parent’s policy | Average cost per month to add a teen driver to a parent’s policy | Total savings per year compared to average |
|---|---|---|---|
Nationwide | $2,819 | $235 | $1,543 cheaper |
USAA* | $3,025 | $252 | $1,337 cheaper |
Erie | $3,215 | $268 | $1,147 cheaper |
Progressive | $3,864 | $322 | $498 cheaper |
Geico | $3,866 | $322 | $496 cheaper |
Average | $4,362 | $363 |
*USAA is only available to military members, veterans and their families.
States With the Cheapest Car Insurance
Vermont is the cheapest state for auto insurance for good drivers. Idaho, Maine, Hawaii and New Hampshire round out the top five. Car insurance rates vary by state due to the different risks and claims made.
| State | Average annual cost for full coverage | Average annual cost for minimum coverage |
|---|---|---|
Alabama | $1,975 | $578 |
Alaska | $1,913 | $518 |
Arizona | $2,110 | $708 |
Arkansas | $2,295 | $550 |
California | $2,768 | $731 |
Colorado | $2,591 | $594 |
Connecticut | $2,252 | $1,088 |
Delaware | $2,405 | $1,107 |
Florida | $3,865 | $1,529 |
Georgia | $2,003 | $815 |
Hawaii | $1,369 | $423 |
Idaho | $1,246 | $400 |
Illinois | $1,903 | $629 |
Indiana | $1,627 | $476 |
Iowa | $1,559 | $318 |
Kansas | $2,032 | $600 |
Kentucky | $2,496 | $799 |
Louisiana | $3,545 | $1,060 |
Maine | $1,361 | $477 |
Maryland | $2,210 | $1,004 |
Massachusetts | $1,804 | $567 |
Michigan | $2,372 | $1,173 |
Minnesota | $2,016 | $677 |
Mississippi | $1,917 | $537 |
Missouri | $2,434 | $726 |
Montana | $2,354 | $544 |
Nebraska | $1,709 | $412 |
Nevada | $2,496 | $920 |
New Hampshire | $1,390 | $518 |
New Jersey | $2,438 | $1,237 |
New Mexico | $2,082 | $551 |
New York | $2,612 | $1,114 |
North Carolina | $1,470 | $528 |
North Dakota | $2,190 | $626 |
Ohio | $1,434 | $389 |
Oklahoma | $2,741 | $567 |
Oregon | $1,748 | $824 |
Pennsylvania | $2,353 | $530 |
Rhode Island | $2,080 | $755 |
South Carolina | $2,172 | $776 |
South Dakota | $2,075 | $381 |
Tennessee | $1,843 | $547 |
Texas | $2,609 | $796 |
Utah | $2,050 | $771 |
Vermont | $1,158 | $313 |
Virginia | $1,755 | $621 |
Washington | $1,525 | $547 |
West Virginia | $1,942 | $542 |
Wisconsin | $1,655 | $424 |
Wyoming | $1,531 | $319 |
Rates are based on a 40-year-old female driver with a good driving record. Averages are based on coverage with $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 for property damage (known as 100/300/100), uninsured motorist coverage, and collision and comprehensive insurance with a $500 deductible.
Source: Quadrant Information Services.
Cheapest Car Insurance by Age
Erie has the lowest-cost insurance for drivers age 16, 18 and 20, based on our analysis of auto insurance rates by age. Nationwide is the cheapest option for drivers of many other ages.
| Age | Cheapest company | Average annual cost |
|---|---|---|
| 16 | Erie | $3,958 |
| 18 | Erie | $3,284 |
| 20 | Erie | $2,653 |
| 25 | Nationwide | $1,672 |
| 35 | Nationwide | $1,498 |
| 45 | Nationwide | $1,401 |
| 55 | Nationwide | $1,285 |
| 65 | Nationwide | $1,273 |
| 75 | Nationwide | $1,412 |
| 80 | Nationwide | $1,588 |
In some cases, USAA is the cheapest company but membership is limited to military personnel, veterans and their families.
The Cheapest Car Insurance Companies of 2024
| Company | Company - Logo | Forbes Advisor rating for cheap car insurance | forbes_advisor_rating_image | Average annual cost for a good driver | Average monthly cost for good drivers | Learn More CTA text |
|---|---|---|---|---|---|---|
| USAA* |  | 5.0 |  | $1,364 | $114 | Get Quotes |
| Nationwide |  | 4.9 | | $1,436 | $120 | Get Quotes |
| Travelers |  | 4.8 |  | $1,521 | $127 | Get Quotes |
| Erie |  | 4.6 |  | $1,642 | $137 | Get Quotes |
| Geico |  | 4.2 |  | $1,597 | $133 | Get Quotes |
| Progressive |  | 4.0 | | $1,826 | $152 | Get Quotes |
*USAA auto insurance is available only to the military, veterans and their families.
The Cheapest Car Insurance Companies in More Detail
Our analysis for April 2024 finds that the cheapest auto insurance companies are:
- USAA – $114 a month
- Nationwide – $120 a month
- Travelers – $127 a month
- Erie – $137 a month
- Geico – $133 a month
- Progressive – $152 a month
USAA
Our Expert Take
We recommend military members, veterans and their families take a look at USAA for cheap car insurance for many driver profiles, including good drivers and those with spotty driving records. Its excellent rates earned USAA 5 stars in our analysis.
| Pros | Cons |
|---|---|
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USAA’s Average Car Insurance Costs
| Driver profile | USAA's annual full coverage costs |
|---|---|
Good drivers | $1,364 |
Drivers with a speeding ticket | $1,661 |
Drivers who caused an accident with injury | $1,958 |
Drivers with a DUI conviction | $2,604 |
Drivers with poor credit | $2,450 |
Senior drivers | $1,455 |
Young drivers | $2,368 |
Teen added to a parent’s policy | $3,025 |
Discounts Available
USAA offers a wide variety of discounts.
 | Annual mileage discount: Based on the number of miles you drive per year. | |
 | Bundling discount: Bundling USAA auto and home policies can save you up to 10%. | |
 | Defensive driver discount: For taking an approved course to improve your driving skills. | |
 | Driver training discount: For drivers under age 21 who take a basic driving course.. | |
 | Family discount: If parents have USAA insurance you can receive a discount when buying your own policy if you’re under age 25. | |
 | Good student discount: Ask for this discount if your high school or college-age child has good grades. | |
 | Length of membership savings: Applied if you maintain coverage with USAA for several years. | |
 | Military installation discount: Up to 15% off comprehensive coverage when you garage your car on base. | |
 | Multi-vehicle discount: For insuring two or more vehicles on a policy. | |
 | New vehicle discount: For having a car that is three years old or newer. | |
 | Safe driver discount: If you have had a good driving record for the past five years. | |
 | Vehicle storage discount: Up to 60% off when you store your vehicle. This is especially useful for military members on deployment. | |
Discount availability can vary by state. | ||
Nationwide
Our Expert Take
We like Nationwide because it has some of the cheapest rates for most driver types, from those with a pristine driving record to those with a ticket or accident and for a variety of ages. In some instances, USAA has better rates, but you must have a military connection to be eligible. Nationwide earned 4.9 stars in our analysis.
| Pros | Cons |
|---|---|
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Nationwide’s Average Car Insurance Costs
| Driver profile | Nationwide's annual full coverage costs |
|---|---|
Good drivers | $1,436 |
Drivers with a speeding ticket | $1,878 |
Drivers who caused an accident with injury | $2,337 |
Drivers with a DUI conviction | $3,083 |
Drivers with poor credit | $2,051 |
Senior drivers | $1,402 |
Young drivers | $2,881 |
Teen added to a parent’s policy | $2,819 |
Discounts Available
Nationwide has a decent variety of possible discounts.
 | Accident-free discount: If your record is free of at-fault accidents. | |
 | Anti-theft discount: Provided if you have certain anti-theft devices in your car. | |
 | Automatic payments discount: For paying your bill with automatic deductions from your bank account. | |
| Defensive driving discount: Complete a state-approved driver’s safety class to get a discount. In some locations, this is only available to customers 55 or older. | |
| Good student discount: Get if you have a young driver who is a full-time student and has a “B” average or better in high school or college. | |
| Multi-policy discount: Given if you bundle auto insurance with a Nationwide homeowners insurance policy. | |
 | Paperless discount: Applied when you receive insurance bills and documents electronically. | |
| Safe driver discount: If you have five years or more of good driving, meaning no tickets, violations or accidents. | |
Discount availability can vary by state. | ||
Travelers
Our Expert Take
We like Travelers for its competitive rates for many types of drivers. It’s consistently one of the top three to five cheapest companies. Travelers also has a very low level of complaints made against it to state insurance departments, which helped it earn 4.8 stars.
| Pros | Cons |
|---|---|
|
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Travelers’ Average Car Insurance Costs
| Driver profile | Travelers' annual full coverage costs |
|---|---|
Good drivers | $1,521 |
Drivers with a speeding ticket | $2,062 |
Drivers who caused an accident with injury | $2,293 |
Drivers with a DUI conviction | $2,610 |
Drivers with poor credit | $2,699 |
Senior drivers | $1,668 |
Young drivers | $2,638 |
Teen added to a parent’s policy | $3,963 |
Discounts Available
Travelers Insurance offers a wide array of car insurance discounts for its customers.
 | Continuous insurance discount: If customers with no gaps in auto insurance coverage. | |
| Driver training discount: If you have a young driver on your policy who takes a qualified training course. | |
 | Early quote discount: For getting a quote before your current policy with another company expires. | |
 | ETF, paid in full and good payer discounts: If you set up automatic payments, pay in full or always pay on time. | |
| Good student discount: If you have a high school or college student on the policy who maintains a “B” average or better. | |
 | Homeownership discount: If you own a home or condo. | |
 | Hybrid or electric vehicle discount: If you own or lease a hybrid or electric car. | |
| Multi-car discount: For insuring multiple vehicles on one policy. | |
| Multi-policy discount: For bundling your auto insurance with other types of insurance (like homeowners insurance). | |
| New car discount: For owning a newer model vehicle that’s three years old or less. | |
| Safe driver discount: Given if you’ve had no accidents, violations or major comprehensive claims for the past three years. | |
 | Student away from home discount: Ask for this if you have a college student on your policy who goes to school at least 100 miles away and won’t be driving your cars. | |
Discount availability can vary by state. | ||
Erie
Our Expert Take
Erie offers the best rates (after USAA) for some driver profiles, which helped it earn 4.6 stars in our evaluation. Erie also stands out for its excellent grade (A-) from repair professionals for its collision claims process.
| Pros | Cons |
|---|---|
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Erie’s Average Car Insurance Costs
| Driver profile | Erie's annual full coverage costs |
|---|---|
Good drivers | $1,642 |
Drivers with a speeding ticket | $1,899 |
Drivers who caused an accident with injury | $2,224 |
Drivers with a DUI conviction | $2,665 |
Drivers with poor credit | $3,701 |
Senior drivers | $1,831 |
Young drivers | $2,575 |
Teen added to a parent’s policy | $3,215 |
Discounts Available
Erie offers a variety of ways to save money on car insurance.
| Annual payment plan: For paying the premium in full at the beginning of the policy period. | |
 | Car safety equipment discounts: Given when your vehicle has safety equipment such as anti-lock brakes, anti-theft devices and factory-installed airbags. | |
| Multi-car discount: For insuring two or more cars with Erie. | |
| Multi-policy discount: A discount of around 20% if you bundle auto and home insurance with Erie. | |
 | Reduced usage discount: For going at least 90 consecutive days without using your vehicle. | |
| Safe driving discount: Given if your driving record has no car accidents or traffic violations. | |
 | Young driver discount: A discount is offered if you’re under the age of 21 and unmarried. | |
Discount availability can vary by state. | ||
Geico
Our Expert Take
Geico earned 4.2 stars in our evaluation thanks to its low costs for many driver types. We also like that Geico has a low level of complaints, making it worth a look if you’re the hunt for low rates.
| Pros | Cons |
|---|---|
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Geico’s Average Car Insurance Costs
| Driver profile | Geico's annual full coverage costs |
|---|---|
Good drivers | $1,597 |
Drivers with a speeding ticket | $2,150 |
Drivers who caused an accident with injury | $2,748 |
Drivers with a DUI conviction | $3,723 |
Drivers with poor credit | $2,482 |
Senior drivers | $1,793 |
Young drivers | $2,781 |
Teen added to a parent’s policy | $3,866 |
Discounts Available
Geico offers a wide range of discounts.
| Accident-free good driver discount: Up to 22% off if your driving record is accident-free for the past five years. | |
| Anti-theft system discount: Up to 23% off if your vehicle has a built-in anti-theft system. | |
 | Airbag discount: Up to 23% off if your vehicle has airbags. | |
 | Anti-lock brakes discount: Get a 5% discount for having anti-lock brakes. | |
 | Automatic payments (e-banking): Enroll in automatic payments and paperless billing to get a discount. | |
 | Daytime running headlights discount: Receive a 3% discount if your vehicle has daytime running lights as part of its standard equipment. | |
 | Defensive driving discount: Complete a defensive driving course and save. | |
 | Driver’s education discount: Save if a young driver on your policy completes a driver’s education course. | |
 | Good student discount: If you have a driver between ages 16 and 24 who is enrolled in school full-time with a B average or better, you can get 15% off. | |
| Homeownership discount: You can get a discount if you own your primary residence. | |
 | Membership and employee discounts: If you belong to one of more than 500 alumni associations, fraternities and sororities or professional organizations you may see savings with Geico. | |
 | Military discount: Up to 15% off for retired military, active military members and members of the National Guard. | |
 | Multi-policy discount: For bundling auto insurance with other types of insurance you buy through Geico, such as homeowners, condo, renters or mobile home insurance. | |
 | Multi-vehicle discount: Up to 25% off when you insure two or more vehicles with Geico. | |
 | New vehicle discount: Up to 25% off if your vehicle is three years old or newer. | |
 | Paid in full discount: For paying the full car insurance premium upfront. | |
 | Student away discount: Save if you have a student away at school more than 100 miles away, without a car, and who doesn’t come home and drive your car more than one weekend per month. | |
Discount availability can vary by state. | ||
Progressive
Our Expert Take
Progressive earned 4 stars in our analysis because it has the cheapest rates for drivers with a DUI and competitive rates for a broad range of other driver profiles. Progressive also has a low level of complaints against it with state insurance departments.
| Pros | Cons |
|---|---|
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Progressive’s Average Car Insurance Costs
| Driver profile | Progressive's annual full coverage costs |
|---|---|
Good drivers | $1,826 |
Drivers with a speeding ticket | $2,350 |
Drivers who caused an accident with injury | $2,770 |
Drivers with a DUI conviction | $2,307 |
Drivers with poor credit | $3,221 |
Senior drivers | $1,937 |
Young drivers | $3,704 |
Teen added to a parent’s policy | $3,864 |
Discounts Available
Progressive offers its customers a good variety of discounts.
| Automatic payments: Get a discount for using automatic payments from a checking account to pay for your policy. | |
 | Continuous insurance: A discount for having auto insurance with no gaps or cancellations, whether with Progressive or another insurer. | |
| Distant student (student away at school) discount: Ask about this discount if you have a driver age 22 or younger who goes to school 100 miles or more away from home and doesn’t have a car with them. | |
| Good student discount: Ask for this 10% discount if you have a student to your policy who has a “B” average or better. | |
 | Homeowner discount: Save up to a 10% discount for owning your home. | |
| Multi-car discount: Average of 12% off by insuring more than one vehicle with Progressive. | |
| Multi-policy discount: An average of 5% discount for having multiple policies through Progressive, such as home and auto insurance. | |
 | Online quote discount: Average of 7% off if you get a quote online. | |
 | Paperless discount: Given if you choose paperless statements. | |
| Pay in full discount: Get a discount if you pay the full insurance bill upfront. | |
 | Sign online discount: Average of 9% off for signing policy documents online. | |
 | Teen driver discount: See savings if you have a teen driver on your policy. | |
Discount availability can vary by state. | ||
Expert Roundup: How to Find Cheap Car Insurance
Here are our top tips for lowering your insurance bill.
| Expert Round-Up: How to Choose the Best Health Insurance for You | ||||
|---|---|---|---|---|
| Ryan McMahon Forbes Advisor insurance advisory board member | Cost varies by state. Some carriers are more expensive in some states and more competitive in others. I don’t believe there is one universally cheap or expensive insurance company. Also, cost is a factor of the last time the insurance company updated its rates, so a company that was more expensive six months ago could now be the cheapest. | |||
| Amy Danise Forbes Advisor Editor | Comparing car insurance quotes with multiple companies is a great way to ensure you’re getting the best price possible. I would compare the rates of at least three companies. And if you make any changes to your policy, such as adding a car, shop around again because the insurer that offered the best rates before may not be the cheapest anymore. | |||
| Penny Gusner Forbes Advisor Senior Writer | Raising your car insurance deductible is an easy change that gets you cheaper rates. I’m a data nerd, so I crunched the numbers and found that if you raise your deductible from $250 to $500 you can save 9% on average—and 18% if you raise it to $1,000. | |||
| Les Masterson Forbes Advisor Editor | Consider buying your auto and home (or renters) insurance from the same company. I find it convenient to have one insurer for both policies, and many companies offer a pretty good discount for bundling auto and home insurance that will bring down your costs. | |||
| Michelle Megna Forbes Advisor Editor | Review your coverage, limits and deductibles to verify they continue to fit your needs. This can help prevent you from paying for unneeded coverage. I would avoid lowering liability limits because auto accident expenses are continuously increasing, and having inadequate coverage could be catastrophic for your finances. | |||
| Ashlee Valentine Forbes Advisor Editor | Many auto insurance discounts are automatically applied when you get a quote but I also ask my agent if there are others I may be missing out on. For example, see if you qualify for a low-mileage discount if you drive only a small number of miles annually. Don’t hesitate to ask your agent about other tips to lower car insurance costs beyond discounts. | |||
The Risks of Buying Cheap Car Insurance
Buying a cheap car insurance policy with bare-bones limits and minimal coverage may sound like a pathway to low costs, but it could end up costing you much more in the long run. Risks of purchasing such a policy include:
- Low liability limits. You must buy at least state minimum limits for liability, but that may not be enough to cover all the damage you cause others in an auto accident. If the accident bills of others exceed your liability limits, you’re left personally responsible, which could lead to a financial crisis.
- Coverage gaps. The cheapest auto policy will only include state minimum coverage, so you won’t have collision or comprehensive coverage that comes with full coverage car insurance. Comprehensive and collision coverage pay out if your car is damaged from an accident or other certain problems, flood waters, hail, striking an animal or vandalism.
Methodology
To identify the cheapest car insurance companies we evaluated each insurer based on its average rates for a variety of drivers, complaints against the company and collision repair grades from auto body professionals.
Auto insurance rates (80% of score): We used data from Quadrant Information Services to find average rates from each company for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, drivers caught without insurance, adding a teen driver, senior drivers and young drivers.
Unless otherwise noted, rates are based on a 40-year-old female driver insuring a new Toyota RAV4 and coverage of:
- $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
- Uninsured motorist coverage of 100/300.
- Collision and comprehensive insurance with a $500 deductible.
State minimum coverage rates reflect the minimum amount of auto insurance required in each state.
Complaints (10% of score): We used auto insurance complaint data from the National Association of Insurance Commissioners. Each state’s department of insurance is in charge of logging and monitoring complaints against companies operating in their states. Most auto insurance complaints center on claims, including unsatisfactory settlements, delays and denials.
The industry complaint average is 1.00, so companies with a ratio below 1.00 have lower levels of complaints.
Collision repair (10% of score): We incorporated insurance company grades from collision repair professionals. We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments. CRASH Network’s Insurer Report Card used grades from more than 1,100 collision repair professionals to gauge auto insurers on the quality of their collision claims service.
Auto Insurance Collision Repair Grades
| Company | CRASH Network collision repair grades |
|---|---|
Erie | A- |
Auto-Owners | B |
Westfield | B |
Nationwide | C |
Progressive | C |
Travelers | C |
Geico | C- |
USAA | D+ |
Source: Courtesy of CRASH Network
Read more: How Forbes Advisor rates car insurance companies
Other Car Insurance Companies We Rated
| Company | Forbes Advisor rating for cheap car insurance |
|---|---|
Westfield |
3.7 stars |
Auto-Owners |
3.3 stars |
Mercury |
1.5 stars |
State Farm |
1.0 star |
Farmers |
1.0 star |
Allstate |
1.0 star |
Safe Auto |
0 star |
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Cheap Car Insurance Frequently Asked Questions
Who has the cheapest car insurance?
Nationwide, Travelers and Geico have the cheapest car insurance in our analysis of rates for good drivers. USAA also has very good rates but sells auto insurance only to military members, veterans and their families.
Our findings are a jumping off point, as car insurance costs vary greatly based on personal factors like your location, vehicle and driving record. You’ll want to compare quotes with multiple insurers to find the cheapest car insurance for your particular situation.
What is the cheapest type of car insurance?
The cheapest type of car insurance is a state-minimum policy, sometimes referred to as liability-only auto insurance. It provides the minimum car insurance required by your state to drive legally. A state-minimum car insurance policy costs an average of $638 per year, based on our analysis. That’s nearly $1,400 cheaper than the average annual cost of a full coverage policy ($2,026).
A state-minimum policy is cheap because it generally has low limits of liability car insurance, which pays for injuries and property damage you cause others in an auto accident. Once accident costs pass your liability limit, though, you’ll be personally responsible for any remaining expenses. For better financial protection, it’s wise to raise your liability limits if possible in case you cause an expensive car accident.
Should I drop collision and comprehensive coverage to get cheap car insurance?
If you drop collision and comprehensive coverage you’ll get cheaper insurance—but you’ll lose the ability to make a claim with your insurer if your car is stolen, totaled or severely damaged in an accident you cause.
The value of your vehicle can help determine if removing comprehensive and collision is a good idea or not. If your car’s value is low and would result in a small claim check if totaled, consider dropping the coverage if you own the car outright. A vehicle with a lease or loan must have comprehensive and collision coverage no matter the value because the lessor or lender mandates it.
How do I get cheap car insurance for a teenager?
Comparison shopping with multiple insurers is the best way to find cheap car insurance for teen drivers. Auto insurance for teenagers is quite pricey—parents can expect their policy costs to double—because of the inexperience and immaturity that these novice drivers.
It costs an average of $2,359 more per year for parents to add a 16-year-old to their car insurance policies, according to our analysis. Adding a teen to a parent’s policy is typically the best way to get a teen insured. It costs an average of $8,572 per year for a 16-year-old to purchase an auto insurance policy on their own.
How can I find the cheapest car insurance quotes?
You can find the cheapest car insurance quotes by comparing rates from multiple insurance companies. Insurers all have different formulas for calculating rates, so you’ll often find a wide range of prices for the exact same coverage.
If you’re a safe driver, a usage-based insurance (UBI) program may be worth trying out to see if you get good rates. With some companies, you can get a sign-on discount plus a bigger discount at renewal time—if your driving scores well. Before signing up for a UBI program, check to see if your rates could possibly go up if your driving score isn’t great.
Do teachers get cheaper car insurance?
Teachers may be able to score cheaper car insurance rates from insurers that offer affiliate group discounts for educators or certain occupations, such as teachers or school administrators. For instance, if you’re part of a national educational association—such as the Association of American Educators—ask your insurance company if you can get a price break on car insurance for teachers.
Companies that offer discounts for teachers include Country Financial, Geico, and Liberty Mutual. While a discount for teachers is nice, the final price you pay is most important. Be sure to shop around with multiple auto insurance companies to find out which ones have the best rates for you.
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